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Facility Location and Distribution Planning in a Disrupted Supply Chain

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Operations Research and Optimization (FOTA 2016)

Part of the book series: Springer Proceedings in Mathematics & Statistics ((PROMS,volume 225))

Abstract

Most facility location models in the literature assume that facilities will never fail. In addition, models that focus on distribution planning assume that transportation routes are disruption-free. However, in reality, both the transportation routes and the facilities are subject to various sorts of disruptions. Further, not many supply chain models in the literature study perishable products. In this paper, we address issues of facility location and distribution planning in a supply chain network for perishable products under uncertain environments. We consider demand uncertainty along with random disruptions in the transportation routes and in the facilities. We formulate a mixed-integer optimisation model. Our model considers several capacitated manufacturers and several retailers with multiple transportation routes. We investigate optimal facility location and distribution strategies that minimise the total cost of the supply chain. We demonstrate the effectiveness of our model through an illustrative example and observe that a resilient supply chain needs to have a different design when compared to a disruption-free supply chain. The effects of various disruption uncertainties are also studied through statistical analysis.

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Notes

  1. 1.

    http://mofpi.nic.in/documents/reports/annual-report.

  2. 2.

    http://www.ibef.org/industry/indian-food-industry.aspx.

  3. 3.

    http://www.palisade.com/risk/.

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Author information

Authors and Affiliations

  1. IIT Bombay, IITB-Monash Research Academy, Powai, Mumbai, 400076, Maharashtra, India

    Himanshu Shrivastava

  2. Shailesh J. Mehta School of Management, Indian Institute of Technology Bombay, Mumbai, 400076, Maharashtra, India

    Pankaj Dutta & Pravin Suryawanshi

  3. Department of Mechanical and Aerospace Engineering, Monash University, Melbourne, VIC, 3168, Australia

    Mohan Krishnamoorthy

Authors
  1. Himanshu Shrivastava
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  2. Pankaj Dutta
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  3. Mohan Krishnamoorthy
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  4. Pravin Suryawanshi
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Corresponding author

Correspondence to Pankaj Dutta .

Editor information

Editors and Affiliations

  1. Department of Mathematics, National Institute of Technology, Durgapur, Durgapur, West Bengal, India

    Samarjit Kar

  2. Department of Computer Science and Engineering, Jadavpur University, Kolkata, West Bengal, India

    Ujjwal Maulik

  3. School of Economics and Management, Beijing University of Chemical Technology, Beijing, China

    Xiang Li

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Shrivastava, H., Dutta, P., Krishnamoorthy, M., Suryawanshi, P. (2018). Facility Location and Distribution Planning in a Disrupted Supply Chain. In: Kar, S., Maulik, U., Li, X. (eds) Operations Research and Optimization. FOTA 2016. Springer Proceedings in Mathematics & Statistics, vol 225. Springer, Singapore. https://doi.org/10.1007/978-981-10-7814-9_19

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